Financial Crime World

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Anti-Money Laundering and Combating Terrorism Financing Regime of Austria

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Background

The report on the anti-money laundering (AML) and combating the financing of terrorism (CFT) regime of Austria was prepared by an assessment team from the International Monetary Fund (IMF), using the Financial Action Task Force’s (FATF) AML/CFT assessment methodology. The team visited Austria in September 2008 and gathered information from government agencies, private sector representatives, and other sources.

Findings

Low Crime Level

Austria has a low crime rate compared to other EU Member States.

Potential Risks

Despite the low crime rate, Austria may be vulnerable to money laundering and financing of terrorism due to its geographical location, historical ties with Central Eastern and Southern Europe countries, and reputation for banking secrecy.

Comprehensive AML/CFT System

The authorities have designed a comprehensive AML/CFT system, supported by federal administrative and supervisory bodies, and active professional organizations.

Assessment Conclusions

Austria’s criminalization of money laundering is generally in line with FATF standards, but there are some areas for improvement:

Criminal Liability

  • The legal framework provides for a wide range of confiscation and provisional measures.
  • However, the assessors found that the definition of money laundering was not fully in line with the FATF standards.

Confiscation

  • Austria’s laws on confiscation are generally adequate.
  • There were some concerns about the effectiveness of these measures.

Reporting Obligations

  • The reporting obligations for suspicious transactions and other activities related to money laundering and financing of terrorism were found to be adequate.

Recommendations

The assessors provided recommendations for improving certain aspects of Austria’s AML/CFT system, including:

Strengthening the Definition of Money Laundering

  • Improve the definition of money laundering to ensure full compliance with FATF standards.

Improving the Effectiveness of Confiscation Measures

  • Enhance the effectiveness of confiscation measures to prevent and combat money laundering and financing of terrorism.

Enhancing Reporting Obligations

  • Strengthen reporting obligations for suspicious transactions and other activities related to money laundering and financing of terrorism.

Conclusion

The report concludes that Austria has made significant progress in implementing a comprehensive AML/CFT system, but there are still areas for improvement to ensure full compliance with FATF standards.